You borrow a lump sum over a fixed period of time (usually 25 years but can be shorter or longer). You pay the interest and some of the capital on a monthly basis to the lender.
ADVANTAGES:
Some flexibility with repayments, such as making overpayments (more than the normal amount) and under some circumstances taking a payment holiday, making underpayments (less than the normal amount) or borrowing back previous overpayments.
The only way you can be 100% certain the loan will be repaid, providing repayments are maintained.
DISADVANTAGES:
Monthly mortgage payments may be higher than interest only mortgages covered by an investment/life assurance product to repay the capital.
Only a small amount of capital is paid off in the early years as the monthly mortgage payment consists of a higher proportion of interest to capital repayment.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
As Independent Mortgage advisers we always offer the option to pay for our services either via fees or commission. Where the commission option is chosen you will not be asked to pay any fee to us unless the best lender is one of the few who do not offer introducer fees to brokers. In such circumstances where the lack of broker commission results in your having to pay a fee - or where you choose to do so to help reduce your overall mortgage costs - we typically charge 0.35% of the loan amount. On a loan of £100,000 this would mean that you may be charged a fee of £350. A minimum fee of £250 will apply. Fees become due upon completion but will be chargeable, and thus invoicable, upon receipt of an offer. You will receive written confirmation of any such chargeable fee before proceeding.
How does it work?
You borrow a lump sum over a fixed period of time (usually 25 years but can be shorter or longer). You pay the interest and some of the capital on a monthly basis to the lender.
ADVANTAGES:
Some flexibility with repayments, such as making overpayments (more than the normal amount) and under some circumstances taking a payment holiday, making underpayments (less than the normal amount) or borrowing back previous overpayments.
The only way you can be 100% certain the loan will be repaid, providing repayments are maintained.
DISADVANTAGES:
Monthly mortgage payments may be higher than interest only mortgages covered by an investment/life assurance product to repay the capital.
Only a small amount of capital is paid off in the early years as the monthly mortgage payment consists of a higher proportion of interest to capital repayment.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
As Independent Mortgage advisers we always offer the option to pay for our services either via fees or commission. Where the commission option is chosen you will not be asked to pay any fee to us unless the best lender is one of the few who do not offer introducer fees to brokers. In such circumstances where the lack of broker commission results in your having to pay a fee - or where you choose to do so to help reduce your overall mortgage costs - we typically charge 0.35% of the loan amount. On a loan of £100,000 this would mean that you may be charged a fee of £350. A minimum fee of £250 will apply. Fees become due upon completion but will be chargeable, and thus invoicable, upon receipt of an offer. You will receive written confirmation of any such chargeable fee before proceeding.
When someone talks about savings and saving money, it could be referring to a piggy bank or a high interest deposit account. Savings are effectively cash or cash instruments
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed
The main purpose of Life Insurance is to provide money for those people who may depend on you financially, in the event that something should happen to you.
Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Taxation can be very complicated and the rules, reliefs and allowances
Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions
